Is BlackRock Stock Underperforming the Dow?

New York-based BlackRock, Inc. (BLK) is a publicly owned investment manager that provides investment management services to institutional clients and retail investors. With a market cap of $174.7 billion, the company offers investment, advisory, and risk management services.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and BLK perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the asset management industry. BlackRock uses its unmatched scale to drive operational efficiency, offer a diversified product suite spanning equity, fixed income and alternatives, and sustain significant investment in technology.

Despite its notable strength, BLK slipped 7.5% from its 52-week high of $1,219.94, achieved on Oct. 15, 2025. Over the past three months, BLK stock gained 10.5%, outperforming the Dow Jones Industrials Average’s ($DOWI) 3.3% gains during the same time frame.

Shares of BLK rose 5.4% on a YTD basis and climbed marginally over the past 52 weeks, underperforming DOWI’s YTD 9.8% gains and 15.9% returns over the last year.

To confirm the bullish trend, BLK has been trading above its 50-day moving average since mid-July. The stock has been trading above its 200-day moving average since late July. 

BlackRock has underperformed the broader market due to asset management fee compression, persistent sticky inflation that drove capital toward cash-equivalent instruments, and elevated operating expenses amid volatile market conditions. Additionally, regulatory scrutiny surrounding its market size and ongoing political debate over its ESG initiatives have squeezed margins and weighed on sentiment.   

On Jul. 15, BLK shares closed up by 6.6% after reporting its Q2 results. Its revenue stood at $7.1 billion, up 30.6% year over year. The company’s EPS increased 19.6% from the year-ago quarter to $12.19.

In the competitive arena of asset management, State Street Corporation (STT) has taken the lead over the stock, with a 45.6% gain on a YTD basis and a 63.3% uptick over the past 52 weeks. 

Wall Street analysts are bullish on BLK’s prospects. The stock has a consensus “Strong Buy” rating from the 18 analysts covering it, and the mean price target of $1,323.22 suggests a potential upside of 17.3% from current price levels.